Gold Performs A U-Turn At The YTD Highs [Video]

While gold is up only a modest three.9% this yr, it’s rallied 14.eight% for the reason that 2018 low and the pattern construction stays bullish. Moreover, by yesterday’s shut the shiny yellow metallic had racked up its most bullish Four-day run since June 2016 to underscore its latest pickup of bullish momentum.

The principle wrongdoer for gold’s spectacular show is because of Donald Trump’s newest menace of tariffs on Mexican items. Not solely is gold receiving safe-haven flows, however its transfer greater has additionally been supported by a weaker USD. Markets appear cautious as as to whether Trump can combat a commerce warfare on two fronts (Mexico and China) which has seen the US greenback undergo.

Nevertheless, stopping simply shy of the 2019 excessive, a strong reversal for the US greenback yesterday has left a giant bearish hammer under key resistance. That its occurred while being overextended from it higher Keltner band strongly suggests the transfer is exhausted over the near-term. Therefor we count on costs to retrace or consolidate earlier than gold finally breaks to new highs.

 

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